Tax Liability of a Producer of Sand and Gravel

August 2, 1960 BIR RULING NO. 341-60 Electra Hollow Cement Blocks San Fernando, La Union Gentlemen : In reply to your letter dated January 7, 1960, I have the honor to inform you that, upon investigation, it was ascertained that you have been gathering sand and gravel from public lands, and at the same time manufacturing cement hollow blocks and pipes for sale, since the middle of November, 1959. Under the foregoing circumstances, you are considered a producer of sand and gravel subject to the fixed and percentage taxes prescribed by sections 182 and 196 of the Tax Code. As manufacturer of cement hollow blocks and pipes, you are considered engaged in another line of business, subject to the fixed and percents taxes prescribed in the same sections of the Tax Code. cdll Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue